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[물가도 성장도 놓쳤다] 3rd quarter growth rate of 0.6%… Annual 1.4% achieved ‘red light’
This year, Korea recorded an economic growth rate of 0% for three consecutive quarters. The price index in November also soared, centering on agricultural products, showing an increase of around 3% for four consecutive months. Amid high inflation, it is becoming difficult to achieve this year’s growth rate forecast (1.4%) targeted by the government and the Bank of Korea.
According to the ‘Real Gross Domestic Product (GDP, provisional)’ statistics for the third quarter of 2023 announced by the Bank of Korea on the 5th, GDP was calculated to have grown by 0.6% compared to the previous quarter for the three months of June to September. Following 0.3% in the first quarter and 0.6% in the second quarter, negative growth was avoided until the third quarter (0.6%), but only remained below 1% for three consecutive quarters.
By industry, the construction industry rose 2.3% compared to the previous quarter, led by the building and civil engineering sectors. Manufacturing also rose by 1.4% due to improvements in the computer, electronic and optical device sectors, and agriculture, forestry and fisheries grew by 1.5% thanks to the expansion of livestock industry and fisheries and fishing. The transportation industry also increased by 1.2% due to the recovery in air transportation. However, the service industry rose only 0.3% due to declines in the wholesale, retail, and lodging and food industries.
The November inflation rate announced today was 3.3%, slowing down for the first time in four months. Although the pressure to increase prices has weakened compared to a month ago (3.8%), the shopping cart price index has risen significantly as the supply and demand of fresh foods such as agricultural products has worsened due to the heat wave and heavy rain this summer. The unabated price of processed foods also contributed to increasing the perceived economic burden.
As the economic contraction continues, it is unclear whether the government and the Bank of Korea will achieve the 1.4% annual economic growth rate forecast.
Moody’s downgrades China’s sovereign credit rating outlook from ‘stable to negative’
International credit rating agency Moody’s downgraded China’s sovereign credit rating outlook from ‘stable’ to ‘negative’ on the 5th. Risks arising from the economic slowdown and the crisis in the real estate sector served as reasons for the downward adjustment.
On this day, Moody’s maintained China’s sovereign credit rating at A1, the fifth highest rating, and lowered the outlook from ‘stable’ to ‘negative’. This is the first time that Moody’s has downgraded China’s sovereign credit rating since 2017.
Moody’s expects China’s annual gross domestic product (GDP) growth to be 4.0% in 2024 and 2025, slower than this year’s estimate of around 5%, and “increased risks associated with the continued contraction of the real estate sector were also reflected in the rating outlook adjustment.” He explained.
China’s Ministry of Finance said it was “disappointed” in Moody’s downgrade of its credit rating outlook and insisted that “risks in real estate and local governments can be controlled.”
Korea-Japan, director-level consultation… Discussing major issues such as the comfort women issue
Korea and Japan held director-level consultations on the 5th and discussed major pending issues between the two countries.
According to the Ministry of Foreign Affairs, Director Seo Min-jeong of the Asia-Pacific Bureau of the Ministry of Foreign Affairs held discussions at the Ministry of Foreign Affairs building in Seoul on this day with Namaz Hiroyuki, Director of the Asia-Pacific Bureau of the Japanese Ministry of Foreign Affairs, who was visiting Korea for inauguration greetings.
It is expected that past issues, such as the issue of comfort women for the Japanese military and lawsuits related to depositing ‘third-party reimbursement’ for forced conscription judgments, were also discussed in today’s consultation.
The two directors agreed to continue communication between diplomatic authorities to develop future-oriented cooperation between Korea and Japan in various fields, the Ministry of Foreign Affairs said.
[단독] HUG, sued for deposit fraud… “Rejecting the 2-month requirement is unfair.”
A victim of a rental fraud whose claim for guarantee insurance was rejected on the grounds that the landlord disappeared and failed to prove the end of the contract renewal before the contract expiration date filed a deposit lawsuit against the Housing and Urban Guarantee Corporation (HUG).
According to Aju Economic Daily’s coverage on the 5th, Mr. A recently filed a lawsuit against HUG claiming a guarantee debt of 98 million won. Although HUG’s difficult guarantee insurance claim process has been criticized for not providing relief to victims of jeonse fraud, this is the first time it has led to a lawsuit.
Kim Eui-taek, the representative attorney of Seongji Partners, a law firm representing Mr. A, criticized, “Although there have been many cases of landlords disappearing in recent years due to questions about whether to terminate the lease contract, the legal disadvantages arising from the landlord disappearing are being passed on to the tenant.” did.
Starting tomorrow, ATM deposits and withdrawals can be made using mobile QR without a physical card… Implemented by 17 banks
Starting tomorrow (the 6th), you will be able to use financial institution ATM deposit and withdrawal services through the QR code on your smartphone without a physical card.
On the 5th, the Financial Informatization Promotion Council, headed by Deputy Governor of the Bank of Korea (Yoo Sang-dae), and the Korea Financial Clearings & Clearings Institute (KFTC), the domestic banking sector, announced a plan to enable deposits and withdrawals through automated bank machines using mobile cash card apps and mobile banking apps without restrictions on smartphone models. They announced that they will launch an ‘ATM deposit/withdrawal service’.
This service, which will be introduced by 17 domestic banks, can be used based on two types of apps: a joint mobile cash card app and an individual mobile banking app.
The existing mobile cash card service was introduced by the Financial Informatization Promotion Council in June 2020 as a joint project with the banking sector. However, this service can only be used at ATMs capable of NFC (near field communication) recognition and with Android phones, causing inconvenience in use. However, in the future, in addition to NFC, ATM deposit/withdrawal service will be possible using QR code without restrictions on smartphone model.
Relevant authorities believe that the introduction of this service will greatly improve the convenience of mobile cash card users in using cash.
Emergency welfare livelihood support for a family of four next year: 1.62 million won → 1.83 million won… 13.16% increase
Starting next year, the emergency welfare livelihood support fund for a four-person household will increase by 13.16% from 1.62 million won to 1.83 million won.
According to the Ministry of Health and Welfare on the 5th, an administrative notice amendment bill to increase the amount of emergency welfare support and livelihood support next year and improve financial asset standards will be announced from the 6th to the 18th of this month. It will take effect from January 1 next year.
Emergency welfare support is a system that temporarily provides livelihood, housing, and medical care to low-income people who have difficulty maintaining their livelihood due to unemployment.
With this revised notice, the amount of livelihood support will be 1,833,500 won per month for a four-person household. A family of six will receive 2,437,800 won next year. If there are 7 or more members, an additional 286,900 won is paid for each additional member.
An official from the Ministry of Health and Welfare explained, “As the National Basic Living Security livelihood benefit has increased, the amount of emergency welfare support has also increased accordingly.”
Reporter Information Hajun Song hajun825@ajunews.com
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